The Northview Group completes £250m securitisation

Deal had a weighted average LTV of 76%

The Northview Group has successfully completed its eighth securitisation since 2015.

The £250 million deal, known as Gemgarto 2018-1, is made up of Kensington Mortgages prime new originations, with no buy-to let loans and no arrears and a weighted average LTV of 76%.

The senior notes of the transaction were 1.2 times oversubscribed at final spread. They were priced at three-month Libor, plus 85 basis points for a duration just short of four years.

This is the fourth securitisation from the prime owner-occupied shelf Gemgarto and brings the total NVG issuance of notes backed by new completions since 2015 to over £3 billion.

The transaction further includes £35 million of prefunding in order to fund upcoming Kensington owner-occupied completions in this transaction.

Alex Maddox, capital markets director at the Northview Group, said: “Despite a challenging market, heightened by a period of market volatility and reduced investor availability after a busy month of primary issuances in June, the Northview Group managed to access the market one more time before the European holidays.

“A total of 16 accounts were involved in the transaction with banks taking the lion’s share at 69% of the total book (evidencing the prime nature of this deal) while we saw a strong participation of domestic investors exceeding 90% of the demand.

“Investors continue to be attracted by the very strong performance of the overall Kensington new origination book, with only nine properties being repossessed across all of its originations since 2010. After a successful 2017, the Northview Group remains the most active issuer of securitisations, with £7.3 billion public bonds issued over 13 deals since March 2015.”